2-19-2013

Since I'm all caught up with the current day trades I'm going to go back and do some old days for practice that I have not done before.

My Thoughts:

Besides the one horrendous short I took I felt I did pretty well.  I stuck to the rules which one of the main ones being once price breaks out of the channel for the 1st time it will go up make a new high before going into a range or selling off.  Mack has said that when a pattern happens earlier in the day you can usually count on it happening again during the day and that is what exactly happened here.  The one trade I took that was a loser was because I didn't stick to my plan.  Today when I stuck to my plan which is to only take trades that are 2nd entries or 2 legged pullbacks to the ends of the channel or to support and resistance areas.  Every time I did that I was a winner.  The one time I deviated and looked for a failed 2nd entry long thinking price was in a range, I was a loser.

Mack's Video Notes:


My Trades:

1.  2nd entry long with a 2 legged pullback off the EMA.  Price had closed outside of the trend channel so the rule is that price will go up to make at least one more high before price goes into a range or reverses so I took both profits at one point.  (Turns out I didn't have the correct trend line drawn, the correct trend line was in purple but I was going off blue)  Great trade!

2.  2 legged pullback to the lower trend channel with a great signal bar.  Great trade!

3.  2nd entry long after price broke the channel for the 1st time.  I expected price to go up and make a new high at least once before it goes into a range or a downtrend.  It may keep on going up but Mack says to look for one more high after price breaks the channel before it goes into a range or a downtrend.  I took a 2 point exit on my second contract which was right at the lower trend line which tends to be resistance rather than support after price breaks the channel and makes a new high.  I was prepared to exit my 2nd contract as soon as I saw a double top formed but that did not happen.  Great trade!

4.  Failed 2nd entry long.  Well looky here.  You didn't follow your plan which is to only take 2nd entries and 2 legged pullbacks to support/resistance and channel lines and it was a horrible losing trade.  This is why you stick to your plan and do not take these trades b/c you cannot read the market yet.  Horrible trade!

5.  2 legged pullback, 2nd entry long, double bottom.  This was the first break of the trend line and coming off of a resistance turned support level.  As soon as price made a double top I got out of the trade with my 2nd contract b/c the rule is after price breaks out of the channel it will probably make at least one new high before going into a range or a downtrend.  It was also very close to the end of the day.  Great trade!

Missed Trades:

1.  2nd entry long off of the lower trend line and EMA.  Should have taken this trade but I hesitated b/c I thought it was too close to the high which is horrible reasoning now that I think about it.  My target is the upper channel and price made a 2nd entry off the lower trend line and EMA so always take this type of trade!